Correlation Between Tiaa-cref Large-cap and Small Cap
Can any of the company-specific risk be diversified away by investing in both Tiaa-cref Large-cap and Small Cap at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Tiaa-cref Large-cap and Small Cap into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tiaa Cref Large Cap Value and Small Cap Growth, you can compare the effects of market volatilities on Tiaa-cref Large-cap and Small Cap and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Tiaa-cref Large-cap with a short position of Small Cap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tiaa-cref Large-cap and Small Cap.
Diversification Opportunities for Tiaa-cref Large-cap and Small Cap
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tiaa-cref and Small is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Tiaa Cref Large Cap Value and Small Cap Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Small Cap Growth and Tiaa-cref Large-cap is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Tiaa Cref Large Cap Value are associated (or correlated) with Small Cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Small Cap Growth has no effect on the direction of Tiaa-cref Large-cap i.e., Tiaa-cref Large-cap and Small Cap go up and down completely randomly.
Pair Corralation between Tiaa-cref Large-cap and Small Cap
Assuming the 90 days horizon Tiaa Cref Large Cap Value is expected to generate 0.68 times more return on investment than Small Cap. However, Tiaa Cref Large Cap Value is 1.47 times less risky than Small Cap. It trades about 0.1 of its potential returns per unit of risk. Small Cap Growth is currently generating about 0.07 per unit of risk. If you would invest 2,124 in Tiaa Cref Large Cap Value on September 2, 2024 and sell it today you would earn a total of 702.00 from holding Tiaa Cref Large Cap Value or generate 33.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tiaa Cref Large Cap Value vs. Small Cap Growth
Performance |
| Timeline |
| Tiaa-cref Large-cap |
| Small Cap Growth |
Tiaa-cref Large-cap and Small Cap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tiaa-cref Large-cap and Small Cap
The main advantage of trading using opposite Tiaa-cref Large-cap and Small Cap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tiaa-cref Large-cap position performs unexpectedly, Small Cap can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Small Cap will offset losses from the drop in Small Cap's long position.| Tiaa-cref Large-cap vs. Franklin Gold Precious | Tiaa-cref Large-cap vs. Oppenheimer Gold Special | Tiaa-cref Large-cap vs. Europac Gold Fund | Tiaa-cref Large-cap vs. Goldman Sachs Clean |
| Small Cap vs. Artisan High Income | Small Cap vs. Multisector Bond Sma | Small Cap vs. Maryland Tax Free Bond | Small Cap vs. Calamos Dynamic Convertible |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Commodity Directory module to find actively traded commodities issued by global exchanges.
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